- What do you look for when browsing through coin listings on various exchanges? How do I go about buying crypto coins? In this blog post, I share everything that I've learned up until this point.
I remember one of my biggest struggles when I first started investing in cryptocurrency. It wasn’t knowing the difference between Litecoin and Bitcoin. It wasn’t getting the best exchange rate. It wasn’t downloading an appropriate wallet. No, my struggle was in not knowing how to buy coins. So, where do you start? How do you know which coin to buy? And what do you look for when browsing through coin listings on various exchanges? How do I go about buying crypto coins? In this blog post, I share everything that I’ve learned up until this point.
Step 1: Get a cryptocurrency wallet.
If you don’t have a cryptocurrency wallet already, then I suggest creating one. I would always recommend never to invest an amount of money that you cannot afford to lose on cryptocurrency. So if you only want to invest $50 a month, Never invest more than $50.
Step 2: Pick an exchange.
The next step is picking a crypto exchange that lists the coins that you are interested in. At this point, many new exchanges are popping up every day, so it can be challenging to know which ones to use and which ones not to use. Always remember to check whether the exchange is supported in your country first, and your currency is supported.
1. CoinBase / Coinbase – The Coinbase exchange is my personal favorite to use because it’s a leading exchange and has extensive coverage of various coins. But if you want to start then, you should get familiar with the options presented at CEX.io, where most new users start off.
2. CEX -I would recommend using CEX as your first exchange if you don’t know anyone who has experience in the cryptocurrency world or if you want to stay away from complicated exchanges like Binance and Bittrex. CEX has a simple interface with a user-friendly list of coins. You can search through multiple options without any hassle at all.
3. Binance – Most people start using Binance because it’s a relatively new exchange that lets you buy altcoins easily and quickly. In addition, they have a lot of coin coverage which can be good or bad depending on your needs. I could post for hours about why trading on Binance is great but click here for more information if you want to know.
4 . Bittrex – Bittrex is still one of the most popular exchanges, even though many new exchanges have come out. What I like about Bittrex is the advanced trading interface. This is where you will need to go if you want to buy Altcoins that are more established and not listed on CEX or Binance.
5. Huobi – Huobi is an exchange that allows you to buy and sell Bitcoin on their exchange much like Binance..
6. Local currencies – You can buy Bitcoin in person with cash in various cities worldwide as long as you have someone to trade with. Check out LocalBitcoins for more information.
Those are just a few popular exchanges, there are literally hundreds of centralized exchanges to chose from.
Step 3: Get an idea of what you want to buy and research the coin.
To pick a coin that you wish to invest in, it’s crucial that you learn about the various technologies, philosophies, and team members of the project that are associated with this altcoin. Why is this important? You want to be sure that the developers of this altcoin have a long-term vision for their project and the team can achieve their goals.
Step 4: Fill out your order on your exchange and buy your coins!
Once you have your wallet with coins you now have access to a world of trading and investing opportunities. It’s important to keep in mind that the price of coins are ever changing and that some coins are riskier than others.
Step 5: Send your coins to a secure wallet like Trezor or Nano Ledger S.
Now that you’ve bought some coins, it’s essential to keep them safe. If you’ve never used a hardware wallet before then, I would recommend going with Trezor or the Ledger Nano S because they are two of the most popular hardware wallets on the market. In addition, the Ledger Nano S is more secure than Trezor as the private keys never leaves this device.
Step 6 – Transfer your coins to a cryptocurrency exchange that has better rates than CEX/CoinBase/Binance)
The last step is making some profit! There is no reason for you to buy altcoins at the prices offered on Coinbase, Binance, or any other large exchanges like Bittrex, where there is a premium in the price. Always check prices on different exchanges first. And also check on exchanges that offer almost zero trading fees. An exchange like WOO – gives you a trading fee discount based on the amount of WOO coins you hold.
Step 7: Transfer your coins to a hardware wallet to keep them safe long-term.
One of the most important things when it comes to having crypto coins is keeping them safe.
buying crypto coins and how to choose coins to trade:
When choosing coins to invest in, you need to look for coins with strong technology/philosophy and are in the top 10 coins by market cap, when you finally learn how to trade, you can start looking for other factors in a coin.
It’s also important to note that you do your research on the developers of this altcoin. Do they have a good amount of experience? What does their roadmap look like? What kind of partnerships do they have with large corporations? Does the development team understand how the technology will be implemented into different markets?
If you did your research, then you should know the answers to these questions. If not, click here for more information on the factors that you need to consider when choosing crypto coins. I would avoid trading in coins that are low in market cap and that don’t have a large user base (AKA low volume). An example of this is DeepBrain Chain which has only a tiny market cap but would be a great investment choice.
So now you know how to start buying cryptocurrency for profit! This is definitely a lot to take in at first, but after you do it a few times, it will be second nature to you, and you’ll wonder why you didn’t do this sooner all along. Be sure to share this with your friends who are still struggling with knowing how to buy cryptocurrency, happy hunting!
If you are curious about blockchain, check this other article.